Modi Makes Second Appeal This Year to Indians to Avoid Buying Gold Unnecessarily

BlockBeats News, September 1st, Indian Prime Minister Modi stated that unless necessary, Indian citizens should avoid buying gold, once again responding to his earlier call to restrict gold demand, as the growing trade deficit and weakening Rupee are putting pressure on the Indian economy.

At the time of Modi's remarks, local Indian media reported that the government is considering lowering gold and silver import tariffs, as the previous increase in tariffs failed to curb the inflow of gold and silver. This is Modi's second similar call this year. In May, he urged Indian citizens to avoid buying gold for at least a year to conserve foreign exchange reserves. Gold is India's second-largest import after oil and a significant source of the trade deficit. In the first four months of this fiscal year starting in April, India's gold imports grew by over 32% year-on-year, further stressing the Rupee.

In July, India's trade deficit widened to nearly $32 billion, reaching the highest level since January this year. In a webcast, Modi said, "If it's not necessary, don't buy gold." He stated that with global supply chains disrupted by wars, India needs to enhance its self-reliance to sustain economic growth. He also urged people to buy domestic products and avoid going overseas for tourism and weddings. (FXStreet)